InvestorQ : Why has Moody’s downgraded India’s GDP growth for 2022?
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Why has Moody’s downgraded India’s GDP growth for 2022?

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4 weeks ago
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When it comes to macros, it is not what you delivery but what you delivery against expectations that really matters. That is why, a day after the GDP growth for Q1FY23 came in lower than expected at just 13.5%, there were a slew of full year GDP downgrades. Moody's Investors Service was foremost among the agencies that cut India's GDP growth projection by a full 110 basis points for 2022 from 8.8% to 7.7%.

Moody’s blamed a slew of factors like rising interest rates, uneven monsoon and slowing global growth for the consistently dampening growth momentum in India. At 7.7%, the GDP growth for calendar year 2022 would be much slower than the 8.3% growth achieved in calendar 2021. Moody’s expects the RBI to remain reasonably hawkish with focus on curbing inflation and that is also likely to keep a lid on growth expansion.

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